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The irreverent WallStreetBets shtick is out. Earnestly sharing ideas in person is in.
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Retail traders are increasingly turning to exclusive investing clubs to get ahead.
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Since the GameStop frenzy of 2021, the perception of the average retail investor has been one of cocky irreverence. They’re a generation that thrives on spicy Reddit posts, meme-y avatars, and an unabashed thirst for risk, or so the stereotype goes.
But there’s a growing movement of young investors looking to distance themselves from the lawlessness of WallStreetBets culture and start keeping more exclusive — and ambitious — company.
BI’s Jennifer Sor recently dove into the world of private trading clubs, which have been soaring in popularity. Each one has some sort of barrier to entry, to make sure it’s attracting only the most serious members.
David Villalobos — a 21-year-old trader who started a group called Elite Trading Network — personally vets all candidates, and says he looks for people who consider trading to be their “life’s ambition.” He says membership is about 30 people strong, and that he’s been fielding a growing number of applications.
There’s also the Forex Lounge, a trading education company, which offers a private club for anyone who gets accepted into one of its selective investing courses. It’s grown its roster to about 100 now — mostly older millennials and their Gen Z children.
The social aspect of private-group membership is a welcome departure from online discourse for many. Rather than sparring with anonymous entities in chat rooms, the members of these clubs say they’re building relationships with like-minded people. That involves going out to fancy dinners, hitting the town, and planning tropical retreats.
What strikes me about the rise of these clubs is the intensity level around them, and how focused and engaged they require members to be. It requires a high level of commitment at, for many applicants, a young age.
It’s also interesting how one of the core tenets of WallStreetBets and meme-stock culture — the idea that it was democratizing investing and sticking it to the man — has completely gone by the wayside. There’s a growing view that online investing discussions have gotten too spammy, and the creation of these groups is, in a way, a reaction to that.
So consider a private investing club, an environment safe from disingenuous internet trolls. You may even get a steak dinner out of it.